Exhibit 99.1

  

 

 

Investor Contact Information:

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

 

SB Financial Group, Inc. Announces Second-Quarter and Six-Month 2014 Results

Near double-digit loan growth and 27 percent linked-quarter earnings growth

 

DEFIANCE, Ohio, July 28, 2014 -- SB Financial Group, Inc. (NASDAQ: SBFG), a diversified financial services company providing full-service community banking, mortgage banking, wealth management and item processing services, today reported earnings for the second quarter and six months ended June 30, 2014.

●

Second-quarter earnings of $1.2 million, a 27 percent increase over the linked quarter

	●	Loan growth of 9.1 percent, up $42.1 million from the prior year, up $24.2 million from the linked quarter
	●	Nonperforming assets at 0.93 percent of total assets
	●	Operating expenses declined 6.4 percent from the prior year

 

Highlights*		Three Months Ended								Six Months Ended
(in $000’s except ratios and per share data)		Jun. 2014				Jun. 2013				Jun. 2014				Jun. 2013
Net interest income (FTE)		$	5,347			$	5,448			$	10,270			$	10,840
Noninterest income			3,295				3,820				5,854				7,387
Noninterest expense			6,627				7,080				12,705				13,750
Net income			1,245				1,319				2,225				2,637
Earnings per diluted share			0.25				0.27				0.46				0.54
Net interest margin (FTE)			3.60	%			3.86	%			3.51	%			3.86	%
Return on assets			0.76	%			0.82	%			0.67	%			0.82	%
Return on equity			8.55	%			9.70	%			7.72	%			9.76	%

 * Consolidated earnings for SB Financial include the results of the Company’s Banking Group, consisting primarily of The State Bank and Trust Company (“State Bank” or the “Bank”), and the Company’s data services subsidiary, Rurbanc Data Services, Inc. (dba “RDSI Banking Systems” or “RDSI”).

 

 “This was a very encouraging quarter for our Company. Improved economic conditions led to a more stable housing environment and lower unemployment. We saw increased loan demand in our traditional markets, as well as our low-share markets of Toledo and Columbus. Our growth this quarter reflects the improved market conditions and optimism of our customers,” said Mark Klein, President and Chief Executive Officer of SB Financial Group.

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was down 6.8 percent from the second quarter of 2013, but up 15.5 percent from the linked quarter.

●

Net interest income (FTE) was down 1.9 percent for the second quarter, but up 8.6 percent compared to the linked quarter

 

●

Net interest margin (FTE) was down 26 basis points for the second quarter, but up 14 basis points to the linked quarter

 

●

Noninterest income was down $0.5 million, or 13.7 percent, for the second quarter, but up $0.7 million, or 28.8 percent, for the linked quarter

 

●

Total revenue, consisting of net interest income on a fully tax equivalent basis and noninterest income, for the first six months of 2014 was $16.1 million, compared to $18.2 million for the first six months of 2013. The change was due primarily to lower mortgage volume and continued compression of net interest margin.

 

Mortgage Loan Business

 

For the second quarter of 2014, mortgage loan originations were $66.6 million, down $15.4 million, or 18.8 percent, from the year-ago second quarter, but up $33.0 million, or 98.1 percent, from the linked quarter. For the first six months of 2014, mortgage loan originations were $100.2 million, from $153.9 million in the first six-months of 2013.

 

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.4 million for the second quarter of 2014, compared to $1.9 million for the year-ago quarter. The mortgage servicing valuation adjustment for the second-quarter 2014 was a negative $0.08 million, slightly worse than the linked quarter. The mortgage servicing portfolio at June 30, 2014, was $627.2 million, up $52.1 million, or 9.1 percent, from June 30, 2013.

 

Mr. Klein noted, “Mortgage volume returned to more normalized levels for our bank this quarter. The purchase market continued to dominate our production, contributing 96 percent of our $67 million in new originations in the quarter. We continue to add originators and take market share in all of our markets.”

 

Mortgage Banking ($000’s)		Three Months Ended
		Jun. 2014				Mar. 2014				Dec. 2013				Sep. 2013				Jun. 2013
Mortgage originations		$	66,563			$	33,602			$	39,679			$	55,192			$	81,945
Mortgage sales			49,091				27,961				33,921				58,101				67,050
Mortgage servicing portfolio			627,215				609,419				605,993				597,030				575,091
Mortgage servicing rights			5,375				5,228				5,180				5,076				4,613
Mortgage servicing revenue:
Loan servicing fees			387				380				388				367				350
OMSR amortization			(147	)			(117	)			(126	)			(164	)			(205	)
Net administrative fees			240				263				262				203				145
OMSR valuation adjustment			(83	)			(18	)			(21	)			205				273
Net loan servicing fees			156				245				241				408				418
Gain on sale of mortgages			1,211				572				776				1,356				1,450
Mortgage banking revenue, net		$	1,368			$	817			$	1,017			$	1,764			$	1,868

 

 

Fee Income and Noninterest Expense

 

SB Financial’s fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and income from bank-owned life insurance. Wealth management assets under management stood at $332.3 million as of the second quarter of 2014. For the quarter, fee income as a percent of total revenue was 38.6 percent, down slightly from the prior year. For the first six months, fee income as a percentage of total revenue was 36.8 percent.

 

For the second quarter of 2014, noninterest expense (NIE) was down $0.5 million, or 6.4 percent, compared to the second quarter of 2013. For the first six months of 2014, operating expenses are down $1.0 million, or 7.6 percent, compared to the prior year first six months. While volume related costs were up slightly this quarter, we continue to see reductions in credit costs, employee benefits, and the reduction in state tax due to Ohio’s new financial institution tax.

 

“Our fee income continues to be a competitive strength, particularly in the current interest-rate environment.” Mr. Klein noted. “We are especially pleased that our fee income as a percentage of total revenue for the second-quarter 2014 was 38.6 percent, which is approaching the 40 percent level we target to achieve. We continue to manage our operating expenses, down over $1.0 million from the prior year.”

 

Fee Income / Noninterest Expense (000’s)
			Jun. 2014				Mar. 2014				Dec. 2013				Sep. 2013				Jun. 2013
Fee Income		$	3,295			$	2,559			$	2,949			$	3,710			$	3,820
Fee Income / Total Revenue			38.6	%			34.7	%			37.1	%			41.8	%			41.7	%
Fee Income / Average Assets			2.0	%			1.6	%			1.8	%			2.3	%			2.4	%
Noninterest Expense		$	6,627			$	6,079			$	6,199			$	6,562			$	7,080
Efficiency Ratio			76.0	%			80.6	%			76.4	%			72.4	%			75.5	%
NIE / Average Assets			4.0	%			3.8	%			3.8	%			4.1	%			4.4	%

 

Balance Sheet

 

Total assets as of June 30, 2014, were $662.5 million, up 4.9 percent from the year-ago quarter. Total equity as of June 30, 2014, was $59.0 million, up 8.5 percent from the year-ago quarter.

 

Total loans held for investment (HFI) were $506.1 million at June 30, 2014, up $42.1 million, or 9.1 percent, from the year-ago quarter. Commercial real estate loans accounted for the majority of growth, up $16.0 million, or 8.0 percent. Commercial and residential real estate loans rose $7.7 million and $11.8 million, respectively. Consumer loans included the growth in our branded credit card portfolio, with $1.0 million in balances and $6.4 million in available credit lines.

 

The investment portfolio of $89.3 million represented 13.5 percent of assets at June 30, 2014, which was down slightly from the prior year. Deposit balances of $524.1 million at June 30, 2014, increased by $12.7 million since June 30, 2013. Growth from the prior year included $9.2 million in checking and $3.5 million in time deposit balances.

 

Mr. Klein stated, “We saw broad and diverse growth in our loan portfolio this quarter compared to the year-ago quarter. All of our markets contributed to the higher loan volume, especially our lower market-share regions of Columbus and Toledo.”

  

Loan Portfolio ($000’s)		Jun. 2014				Mar. 2014				Dec. 2013				Sep. 2013				Jun. 2013				Variance YOY
Commercial		$	92,424			$	85,701			$	85,368			$	81,571			$	84,766			$	7,658
% of Total			18.3	%			17.8	%			17.9	%			17.2	%			18.3	%			9.0	%
Commercial RE			215,824				212,502				205,301				209,739				199,795				16,029
% of Total			42.6	%			44.1	%			43.0	%			44.1	%			43.1	%			8.0	%
Agriculture			43,475				39,028				39,210				39,636				38,552				4,923
% of Total			8.6	%			8.1	%			8.2	%			8.3	%			8.3	%			12.8	%
Residential RE			105,054				97,857				99,620				96,477				93,292				11,762
% of Total			20.8	%			20.3	%			20.9	%			20.3	%			20.1	%			12.6	%
Consumer & Other			49,350				46,836				47,804				47,810				47,630				1,720
% of Total			9.7	%			9.7	%			10.0	%			10.1	%			10.3	%			3.6	%
Total Loans		$	506,127			$	481,924			$	477,303			$	475,233			$	464,035			$	42,092
Total Growth Percentage																							9.1	%

 

Asset Quality

 

SB Financial continues to improve its asset quality, reporting nonperforming assets of $6.2 million as of June 30, 2014, down $1.4 million, or 18.6 percent, from the year-ago quarter. Our 0.93 percent level of nonperforming to total assets was the lowest since the first quarter of 2007. Coverage of problem loans by the loan loss allowance was 116 percent at June 30, 2014.

 

“Our total past due loans declined to 58 basis points at quarter end, and our nonperforming asset percentage reached a seven-year low. The wide diversity in our markets provides a unique balance, which drives growth in higher quality assets,” stated Mr. Klein. “Achieving and maintaining top-quartile asset quality continues to be a primary focus for us.”

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Loan Category			Jun. 2014				Mar. 2014				Dec. 2013				Sep. 2013				Jun. 2013
Commercial		$	1,485			$	1,818			$	2,316			$	2,738			$	982
% of Total Commercial loans			1.6	%			2.1	%			2.7	%			3.4	%			1.2	%
Commercial RE loans			699				753				532				642				519
% of Total CRE loans			0.3	%			0.4	%			0.3	%			0.3	%			0.3	%
Residential RE			1,534				1,555				1,651				1,837				2,285
% of Total Res. RE loans			1.5	%			1.6	%			1.7	%			1.9	%			2.5	%
Consumer & Other			288				280				345				363				600
% of Consumer & Other loans			0.6	%			0.6	%			0.7	%			0.8	%			1.3	%
Total Nonaccruing Loans			4,006				4,406				4,844				5,580				4,386
% of Total Loans			0.8	%			0.9	%			1.0	%			1.2	%			1.0	%
Accruing Restructured Loans			1,665				1,793				1,739				1,756				1,262
Total Nonaccruing & Restructured		$	5,671			$	6,199			$	6,583			$	7,336			$	5,648
% of Total Loans			1.1	%			1.3	%			1.4	%			1.5	%			1.2	%
OREO & Repossessed Vehicles			516				615				651				1,430				1,955
Total Nonperforming Assets		$	6,187			$	6,814			$	7,233			$	8,766			$	7,603
% of Total Assets			0.9	%			1.1	%			1.1	%			1.4	%			1.2	%

 

 

Capitalization

 

Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 50 basis points over the past year and stood at 6.5 percent as of June 30, 2014. All bank regulatory ratios remain in excess of "well-capitalized" levels. At June 30, 2014, State Bank's Total Risk-Based Capital was estimated to be $61.6 million, $21.9 million above the “well-capitalized” level. The Total Risk-Based Capital Ratio is estimated at 12.4 percent.

 

The company will hold a related conference call and webcast today at 3:00 p.m. EDT. Interested parties may access the conference call by dialing 1-888-317-6016. The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial Group website.

 

About SB Financial Group

 

Headquartered in Defiance, Ohio, SB Financial Group, Inc. is a diversified financial services holding company with two wholly-owned operating subsidiaries: State Bank and RDSI Banking Systems (RDSI). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, mortgage banking and commercial and agricultural lending, operating through 17 banking centers in seven northwestern Ohio counties and one center in Fort Wayne, Indiana, as well as three loan production offices located in Columbus, Ohio, and Angola, Indiana. RDSI provides item processing services to community banks located primarily in the Midwest. SB Financial Group, Inc.’s common stock is listed on the NASDAQ Global Market under the symbol SBFG.

 

Forward-Looking Statements

 

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking, insurance and mortgage industries, competitive factors specific to markets in which SB Financial Group and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors. Additional factors that could cause results to differ from those described above can be found in the Company’s Annual Report on Form 10-K and documents subsequently filed by SB Financial Group with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial Group or any person acting on its behalf are qualified by these cautionary statements.

 

Non-GAAP Financial Measures

 

In addition to results presented in accordance with GAAP, this release contains certain non-GAAP financial measures. Management believes that providing certain non-GAAP financial measures provides investors with information useful in understanding the Company’s financial performance, its performance trends and financial position. Specifically, SB Financial Group provides measures based on “core operating earnings,” which excludes merger, integration and restructuring expenses that are not reflective of on-going operations or not expected to recur. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.

###

 

 

SB FINANCIAL GROUP, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		June				March				December				September				June
($ in Thousands)		2014				2014				2013				2013				2013
ASSETS
Cash and due from banks		$	13,778			$	14,860			$	13,137			$	19,016			$	10,750
Securities available for sale, at fair value			85,586				93,305				89,793				86,620				95,379
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			89,334				97,053				93,541				90,368				99,127
Loans held for sale			8,290				7,165				3,366				2,407				10,715
Loans, net of unearned income			506,127				481,924				477,303				475,233				464,035
Allowance for loan losses			(6,568	)			(6,726	)			(6,964	)			(7,120	)			(7,013	)
Net loans			499,559				475,198				470,339				468,113				457,022
Premises and equipment, net			13,281				13,414				12,607				12,719				12,772
Cash surrender value of life insurance			13,059				12,982				12,906				12,826				12,742
Goodwill			16,353				16,353				16,353				16,353				16,353
Core deposits and other intangibles			393				524				655				784				913
Foreclosed assets held for sale, net			516				615				651				1,430				1,955
Mortgage servicing rights			5,375				5,228				5,180				5,076				4,613
Accrued interest receivable			1,456				1,423				1,281				1,694				1,575
Other assets			1,106				1,487				1,738				2,626				2,955
Total assets		$	662,500			$	646,302			$	631,754			$	633,412			$	631,492
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	87,706			$	84,265			$	81,570			$	78,217			$	76,355
Interest bearing demand			116,765				126,520				119,551				124,860				118,957
Savings			63,199				64,306				61,652				61,899				61,513
Money market			80,288				85,731				79,902				78,406				78,487
Time deposits			176,109				171,897				175,559				178,161				176,066
Total deposits			524,067				532,719				518,234				521,543				511,378
Notes payable			-				-				589				680				1,148
Advances from Federal Home Loan Bank			37,000				14,000				16,000				16,000				30,000
Repurchase agreements			17,246				16,905				14,696				14,836				9,314
Trust preferred securities			20,620				20,620				20,620				20,620				20,620
Accrued interest payable			655				425				639				448				715
Other liabilities			3,902				4,198				4,707				3,748				3,930
Total liabilities			603,490				588,867				575,485				577,875				577,105
Equity
Preferred stock			-				-				-				-				-
Common stock			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,403				15,391				15,412				15,399				15,392
Retained earnings			31,757				30,708				29,899				28,846				27,648
Accumulated other comprehensive income			908				407				74				415				496
Treasury stock			(1,627	)			(1,640	)			(1,685	)			(1,692	)			(1,718	)
Total equity			59,010				57,435				56,269				55,537				54,387
Total liabilities and equity		$	662,500			$	646,302			$	631,754			$	633,412			$	631,492

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands, except share data)		Three Months Ended																				Six Months Ended
			June				March				December				September				June				June				June
Interest income			2014				2014				2013				2013				2013				2014				2013
Loans
Taxable		$	5,654			$	5,241			$	5,428			$	5,649			$	5,874			$	10,895			$	11,757
Nontaxable			13				16				13				14				16				29				40
Securities
Taxable			310				309				313				305				296				619				626
Nontaxable			179				175				181				178				174				354				344
Total interest income			6,156				5,741				5,935				6,146				6,360				11,897				12,767
Interest expense
Deposits			503				498				513				539				573				1,001				1,179
Repurchase Agreements & Other			4				11				14				13				15				15				31
Federal Home Loan Bank advances			71				74				82				83				84				145				174
Trust preferred securities			330				333				330				336				338				663				741
Total interest expense			908				916				939				971				1,010				1,824				2,125
Net interest income			5,248				4,825				4,996				5,175				5,350				10,073				10,642
Provision for loan losses			150				-				-				401				200				150				499
Net interest income after provision for loan losses			5,098				4,825				4,996				4,774				5,150				9,923				10,143
Noninterest income
Wealth Management Fees			649				632				689				669				652				1,281				1,295
Customer service fees			665				610				673				659				639				1,275				1,255
Gain on sale of mtg. loans & OMSR's			1,211				572				776				1,356				1,450				1,783				2,934
Mortgage loan servicing fees, net			156				245				241				408				418				401				597
Gain on sale of non-mortgage loans			84				23				303				44				82				107				238
Data service fees			322				306				295				333				458				628				872
Net gain on sales of securities			56				-				-				28				-				56				20
Gain/(loss) on sale/disposal of assets			(15	)			(34	)			(265	)			15				(129	)			(49	)			(234	)
Other income			167				205				237				198				250				372				410
Total non-interest income			3,295				2,559				2,949				3,710				3,820				5,854				7,387
Noninterest expense
Salaries and employee benefits			3,451				3,120				3,027				3,343				3,688				6,571				7,127
Net occupancy expense			485				573				494				507				513				1,058				1,054
Equipment expense			645				639				651				701				703				1,284				1,458
Data processing fees			249				211				254				189				194				460				271
Professional fees			465				338				443				456				499				803				928
Marketing expense			170				123				136				135				92				293				200
Telephone and communication			107				112				110				156				158				219				316
Postage and delivery expense			187				204				173				199				209				391				424
State, local and other taxes			95				92				138				140				138				187				272
Employee expense			140				115				154				125				126				255				278
Intangible amortization expense			131				131				129				129				153				262				306
OREO Impairment			-				-				-				-				-				-				33
Other expenses			502				421				490				482				607				922				1,083
Total non-interest expense			6,627				6,079				6,199				6,562				7,080				12,705				13,750
Income before income tax expense			1,766				1,306				1,746				1,922				1,890				3,072				3,780
Income tax expense			521				326				522				578				571				847				1,143
Net income		$	1,245			$	980			$	1,224			$	1,344			$	1,319			$	2,225			$	2,637
Common share data:
Basic earnings per common share		$	0.26			$	0.20			$	0.25			$	0.28			$	0.27			$	0.46			$	0.54
Diluted earnings per common share		$	0.25			$	0.20			$	0.25			$	0.28			$	0.27			$	0.46			$	0.54
Average shares outstanding ($ in thousands):
Basic:			4,875				4,871				4,870				4,867				4,866				4,873				4,863
Diluted:			4,893				4,894				4,882				4,881				4,870				4,894				4,870

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		Three Months Ended																				Six Months Ended
SUMMARY OF			June				March				December				September				June				June				June
OPERATIONS			2014				2014				2013				2013				2013				2014				2013
Net interest income		$	5,248				4,825				4,996				5,175				5,350				10,073				10,642
Tax-equivalent adjustment		$	99				98				100				99				98				197				198
Tax-equivalent net interest income		$	5,347				4,923				5,096				5,274				5,448				10,270				10,840
Provision for loan loss		$	150				-				-				401				200				150				499
Noninterest income		$	3,295				2,559				2,949				3,710				3,820				5,854				7,387
Total revenue, tax-equivalent		$	8,642				7,482				8,045				8,984				9,268				16,124				18,227
Noninterest expense		$	6,627				6,079				6,199				6,562				7,080				12,705				13,750
Pre provision pretax income		$	1,917				1,306				1,746				2,323				2,090				3,222				4,279
Pretax income		$	1,767				1,306				1,746				1,922				1,890				3,072				3,780
Net income		$	1,245				980				1,224				1,344				1,319				2,225				2,637
PER SHARE INFORMATION:
Basic earnings per share		$	0.26				0.20				0.25				0.28				0.27				0.46				0.54
Diluted earnings per share		$	0.25				0.20				0.25				0.28				0.27				0.45				0.54
Common dividends		$	0.040				0.035				0.035				0.03				0.055				0.075				0.055
Book value per common share		$	12.10				11.78				11.55				11.42				11.17				12.10				11.17
Tangible book value per common share		$	8.67				144.34				8.06				7.89				7.63				8.67				7.63
PERFORMANCE RATIOS:
Return on average assets			0.76	%			0.61	%			0.76	%			0.84	%			0.82	%			0.67	%			0.82	%
Return on average common equity			8.55	%			6.88	%			8.75	%			9.82	%			9.70	%			7.72	%			9.76	%
Return on avg. tangible common equity			12.01	%			7.52	%			12.71	%			14.43	%			14.35	%			10.91	%			14.42	%
Efficiency ratio			76.03	%			80.55	%			76.40	%			72.40	%			75.54	%			78.13	%			74.57	%
Earning asset yield			4.16	%			4.10	%			4.31	%			4.40	%			4.58	%			4.07	%			4.62	%
Cost of interest bearing liabilities			0.72	%			0.74	%			0.76	%			0.79	%			0.81	%			0.73	%			0.85	%
Net interest margin			3.53	%			3.39	%			3.50	%			3.65	%			3.79	%			3.45	%			3.79	%
Tax equivalent effect			0.07	%			0.07	%			0.07	%			0.07	%			0.07	%			0.06	%			0.07	%
Net interest margin - fully tax equivalent basis			3.60	%			3.46	%			3.57	%			3.72	%			3.86	%			3.51	%			3.86	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	330				323				163				307				213				653				349
Recoveries		$	21				85				7				13				34				106				52
Net charge-offs		$	309				238				156				294				179				547				297
Nonaccruing loans/ Total loans			0.79	%			0.91	%			1.01	%			1.14	%			0.95	%			0.79	%			0.95	%
Nonperforming loans/ Total loans			1.12	%			1.29	%			1.38	%			1.51	%			1.22	%			1.12	%			1.22	%
Nonperforming assets/ Loans & OREO			1.22	%			1.41	%			1.51	%			1.80	%			1.63	%			1.22	%			1.63	%
Nonperforming assets/ Total assets			0.93	%			1.05	%			1.14	%			1.36	%			1.20	%			0.93	%			1.20	%
Allowance for loan loss/ Nonperforming loans			115.8	%			108.5	%			105.8	%			99.4	%			124.2	%			115.82	%			124.2	%
Allowance for loan loss/ Total loans			1.30	%			1.40	%			1.46	%			1.50	%			1.51	%			1.30	%			1.51	%
Net loan charge-offs/ Average loans (ann.)			0.25	%			0.20	%			0.13	%			0.25	%			0.15	%			0.22	%			0.13	%
Loan loss provision/ Net charge-offs			48.54	%			0.00	%			0.00	%			136.39	%			111.73	%			27.42	%			168.01	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			96.58	%			90.46	%			92.10	%			91.12	%			90.74	%			96.58	%			90.74	%
Equity/ Assets			8.91	%			8.89	%			8.91	%			8.77	%			8.61	%			8.91	%			8.61	%
Tangible equity/ Tangible assets			6.54	%			54.43	%			6.39	%			6.23	%			6.04	%			6.54	%			6.04	%
END OF PERIOD BALANCES
Total loans		$	506,127				481,924				477,303				475,233				464,035				506,127				464,035
Total assets		$	662,500				646,302				631,754				633,412				631,492				662,500				631,492
Deposits		$	524,067				532,719				518,234				521,543				511,378				524,067				511,378
Stockholders equity		$	59,010				57,435				56,269				55,537				54,387				59,010				54,387
Intangibles		$	16,746				(646,064	)			17,008				17,137				17,266				16,746				17,266
Tangible equity		$	42,264				703,499				39,261				38,400				37,121				42,264				37,121
Full-time equivalent employees			193				647				200				196				198				193				198
Period end basic shares outstanding			4,875				4,874				4,870				4,864				4,867				4,875				4,867
AVERAGE BALANCES
Total loans		$	500,167				476,553				479,701				474,349				464,105				488,425				462,058
Total earning assets		$	594,256				569,524				571,332				567,787				564,050				584,632				561,665
Total assets		$	658,108				646,864				645,148				636,437				640,382				659,187				639,698
Deposits		$	531,786				524,145				525,334				516,669				520,259				527,956				522,585
Stockholders equity		$	58,276				56,977				55,925				54,758				54,398				57,654				54,020
Intangibles		$	16,811				4,875				17,404				17,504				17,633				16,877				17,437
Tangible equity		$	41,465				52,102				38,521				37,254				36,765				40,777				36,583

  

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three & Six Months Ended June 30, 2014 and 2013

 

($ in Thousands)		Three Months Ended June 30, 2014												Three Months Ended June 30, 2013
		Average								Average				Average								Average
Assets			Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	76,271				310				1.63	%		$	83,152				296				1.43	%
Nontaxable securities			17,818				271				6.09	%			16,793				264				6.28	%
Federal funds sold			-				-				N/A				-				-				N/A
Loans, net			500,167				5,674				4.54	%			464,105				5,898				5.08	%
Total earning assets			594,256				6,255				4.21	%			564,050				6,458				4.58	%
Cash and due from banks			12,767												21,248
Allowance for loan losses			(6,780	)											(6,960	)
Premises and equipment			13,872												15,162
Other assets			43,993												46,882
Total assets		$	658,108											$	640,382
Liabilities
Savings and interest bearing demand		$	272,189				19				0.03	%		$	264,530				18				0.03	%
Time deposits			173,809				484				1.11	%			178,162				555				1.25	%
Repurchase agreements & Other			15,594				4				0.10	%			11,774				15				0.51	%
Advances from Federal Home Loan Bank			21,663				71				1.31	%			21,571				84				1.56	%
Trust preferred securities			20,620				330				6.40	%			20,620				338				6.56	%
Total interest bearing liabilities			503,875				908				0.72	%			496,657				1,010				0.81	%
Non interest bearing demand			85,788												77,567
Other liabilities			10,169												11,760
Total liabilities			599,832												585,984
Equity			58,276												54,398
Total liabilities and equity		$	658,108											$	640,382
Net interest income (tax equivalent basis)						$	5,347											$	5,448
Net interest income as a percent of average interest-earning assets											3.60	%											3.86	%

 

 

		Six Months Ended June 30, 2014												Six Months Ended June 30, 2013
		Average								Average				Average								Average
Assets			Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	76,883				619				1.61	%		$	83,336				626				1.50	%
Nontaxable securities			19,324				536				5.55	%			16,271				521				6.40	%
Federal funds sold			-				-				N/A				-				-				N/A
Loans, net			488,425				10,939				4.48	%			462,058				11,818				5.12	%
Total earning assets			584,632				12,094				4.14	%			561,665				12,965				4.62	%
Cash and due from banks			19,784												22,867
Allowance for loan losses			(6,881	)											(6,912	)
Premises and equipment			13,711												15,142
Other assets			47,941												46,936
Total assets		$	659,187											$	639,698
Liabilities
Savings and interest bearing demand		$	269,190				136				0.10	%		$	262,183				39				0.03	%
Time deposits			173,781				(1	)			0.00	%			183,151				1,140				1.24	%
Repurchase agreements & Other			17,009				15				0.18	%			11,625				31				0.53	%
Advances from Federal Home Loan Bank			18,493				847				9.16	%			19,599				174				1.78	%
Trust preferred securities			20,620				663				6.43	%			20,620				741				7.19	%
Total interest bearing liabilities			499,093				1,661				0.67	%			497,178				2,125				0.85	%
Non interest bearing demand			84,985												77,251
Other liabilities			17,455												11,249
Total liabilities			601,533												585,678
Equity			57,654				4,875								54,020
Total liabilities and equity		$	659,187											$	639,698
Net interest income (tax equivalent basis)						$	10,434											$	10,840
Net interest income as a percent of average interest-earning assets											3.57	%											3.86	%

 

 

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